BABS

Illinois Tollway this week sold $500m of the Build America Bonds created by the US Government as part of economic "stimulus" efforts. They were 15 and 25 year maturities and were issued at 5.293% for the 2024 securities and 6.184% for the 2035 securities.

Allowing for the standard US BAB subsidy of 35% of interest costs these work out as costing the Tollway 3.44% and 4.02%.